STOCKHOLM, Sweden–Klarna is reporting that more than one million Americans signed up for the Klarna Card in the 11 weeks since its July 4 launch in the United States.
The Klarna Card gives consumers the choice of paying instantly with debit or spreading the cost over time, the global digital bank and payments provider said in a statement.
“The amazing response to our card in the U.S. shows just how strong the demand is for a fairer, more transparent way to pay,” Klarna Chief Marketing Officer David Sandström said in the release. “With the Klarna Card, consumers get the best of both worlds—the simplicity of a debit card with the flexibility of credit.”
Spends Like Debit, But…
Klarna unveiled the Klarna Card in June, saying the card spends like debit but can flip into pay later mode, extending the buy now, pay later (BNPL) model from the checkout screen to the in-store experience.
The Klarna Card is built on Visa’s Flexible Credential, issued by WebBank and housed in a Federal Deposit Insurance Corp.-insured wallet.
As the company explained, Visa’s Flexible Credential is a network capability that lets a single piece of plastic surface multiple funding sources.
In the case of the Klarna Card, this capability works behind the scenes to allow consumers to pay up front in debit mode or activate Klarna’s Pay in 4 and pay-later plans at any merchant that already accepts Visa, Klarna said.
Simplicity & Flexibility
Sandström said in the announcement of the Klarna Card that consumers want “simplicity, flexibility and transparency.”
“That’s exactly what has made Klarna’s payment methods so popular online, and now we’re bringing that same experience to a physical card,” Sandström said.
Klarna said Aug. 14 that its year-over-year revenue growth accelerated to 20% in the second quarter and was especially strong in the U.S., where it was gauged at 38%.
The company attributed its growth to its expanding merchant ecosystem and engagement with consumers.
